Slump in edible Oil prices sought

Staff Report

ISLAMABAD: Federal Minister for Finance and Revenue Shaukat Tarin Monday urged the Pakistan Vanaspati Manufacturers Association (PVMA) to adopt market-based solutions and bring down prices of edible oil and ghee in the domestic market in line with the international price trend.
If there is a slight dip in the international market, it must be reflected in the domestic prices so that the consumers get relief amid highly fluctuating edible oil market, the federal minister said during a meeting with a PVMA delegation here.
The Finance Minister stressed the need to evaluate the whole situation rationally and urged PVMA to come up with sustainable pricing mechanism in collaboration with the Ministry of Industries and Production and Federal Board of Revenue (FBR).
The Finance Minister also directed Chairman FBR to assure expeditious disbursement of refunds to the importers of vegetable ghee/oil to ensure availability of funds.
Besides, he constituted a committee comprising representatives of PVMA, Secretary M/o Industries and Production and Chairman FBR to workout arrangement for streamlining collection of sales tax and a predictable pricing formula.
While welcoming the Chairman PVMA, the Finance Minister expressed his concern over the rise in the prices of edible oil/ghee in domestic markets over the period of time.
Earlier, Chairman PVMA briefed the minister about the international hike in prices of palm and soyabean oils particularly during ongoing COVID-19 pandemic.
The international prices kept fluctuating between the range of $1100 – 1257 per ton and the domestic market drives rates from the prevailing international prices and the dollar value.
The exchange rate also has a significant impact on edible oil prices in the country, he added.
Among others, the meeting was attended by Federal Minister for Industries and Production, Makhdoom Khusro Bakhtiar; SAPM on Finance and Revenue, Dr. Waqar Masood; Secretary Ministry of Industries and Production, Chairman FBR and other senior officers participated in the meeting.